Question

What can you infer from the chart below?

• A. As fuel price increases, food price also increases
• B. When fuel price drops, food prices also drop
• C. Fuel and food prices are not interconnected
• D. Data is insufficient to make an inference

Answer 1

Answer: (A), (B)

When fuel price drops, food prices also drop

In developing countries, one of the major reasons for food crisis is not low food production but the rising price of fuel which is needed for the transport of all the food products from the place they are produced to the customer. Hence, when the fuel prices rise there is also a rise in the food products prices.